when builder not collected service tax from the client and can he say collected amount from client is inclusive of service tax ?

[RameshBabu Kari]

when builder is charging the amount for the sale of apartment and service tax is not charging from client and charging the amount as per the amount mentioned in agreement in accordance with the govt norms but no service tax is collecting and can we show such collection amount is inclusive of service tax ? can we show the such service tax amount as collected and remitting to the department ?

AI Summary

Builders' Payments Before Completion Certificate Are Inclusive of Service Tax Under Section 67(2) of the Finance Act. A forum discussion addressed whether a builder can claim that the amount collected from a client is inclusive of service tax when no separate service tax is charged. A participant explained that if the payment was collected before the completion certificate or occupation, the amount is considered inclusive of service tax under Section 67(2) of the Finance Act, known as cum-tax value. The service tax must be calculated and deposited based on this gross amount. Another participant agreed, emphasizing that the builder should not collect additional tax from customers afterward.